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International shipping of cargo to and from China is a vital part of trading activities with the second largest economy in the world.
China has a significant transport infrastructure, including the world’s busiest sea port in Shanghai, and further investments are envisaged. As part of the 12th Five-Year Plan (2011-2015) already 310 new airports were built and it is intended to open further 74 airports until 2020. Furthermore, China continues its expansion of the ancient continental trade route to Europe, the New Silk Road (One Belt, One Road).
In general, China’s efforts to bring its transportation laws in line with international standards are visible. China ratified some important international transport conventions or incorporated similar standards into national legislation.
However, some vagueness remains concerning the implementation of the standards in practice – especially concerning the provisions on liabilities. Local applications, interpretations, regulations and measures may exist, which can decisively change the final result. A thorough investigation of the individual case is therefore always indispensable.
Irrespective of the mode of transport or the nature of the freight, China’s general contract law, the Contract Law of the People’s Republic of China of 1999, contains liability rules for freight transport contracts in its articles 288-292 and 304-316. These rules principally apply to all transport contracts in China, unless a more specific law demands application.
Some key provisions of the system can be summarized as follows:
Whilst the risks of loss, damage or delay of goods are significantly lower than in the days of Marco Polo’s caravans, an understanding of the liability regimes and legal risks that apply in this context is important for cargo interests, insurers and carriers.
updated 6 June 2017
Sebastian Wiendieck
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